Inheritance Tax Manual

Assessing: repayments: complicated cases

Working out the interest attributable to repayable tax is more complicated where

there has been more than one previous calculation, or

tax previously paid has been satisfied out of money on deposit.

If the tax to repay is less than the tax charged on the previous calculation then the position is as for a simple case (IHTM31612). But, if the tax to repay is more than the tax charged on the previous calculation then you must apply the rule `last in - first out’.